After postponing the launch of their long-rumored TV, it looks like Apple Inc. (NASDAQ:AAPL) is looking for a job in advertising. The company is launching the iBeacon, a device that will be able to give retailers and service businesses a new tool in advertising. Is this Apple’s next big business move? It seems that Apple may be the best positioned company for local ad industries, leaving out of the competition some other companies trying to dominate the early local ad industry. Its main target: Google Inc (NASDAQ:GOOG).
What is Google doing?
Google advertises on web services. It is working on improving the GPS data on its Google Adwords campaigns. This decision was made in order to increase the number of advertising purchases. Both companies are trying to improve the usability of the local ads using Micro-Map internal locations. However, with its roll-out of local advertising, the approach by Apple is a bit different.
Apple is pulling out all the stops: its plan would use low-energy Bluetooth and iCloud. This method will enable the delivery of ads when customers pass near a shop. You will also get ads inside restaurants and bars. Its best feature? It consumes a really small amount of battery power. You will also be able to pay your checks without making contact with other human beings. You will have a personal electronic cash register on your iPhone: you will get to scan items and pay them with just a click (or a touch, in this case). The iBeacon and its technology seem revolutionary enough to provide new digital retail opportunities and advancements and an improved shopping experience. The device will roll out first in Apple Stores and then in other outlets.
Check out this video to learn more about the iBeacon and all the benefits it will bring to your everyday life:
Apple’s next step?
iBeacons seem to be a good way to reignite investor enthusiasm. But this would also mean a completely new direction for Apple, that makes most of its profits from selling hardware. In recent months, those selling numbers have been going down and it seems like the Cupertino-based company is looking for a new way to improve its software sales.
So the question then becomes, with the ball now in the other court, what might Google do to respond? Can this ceonept by Apple win over smartphone users and advertisers?